NVIDIA’s stock kept falling on Thursday, dropping about 2.5% in early trading as worries about the AI industry and global tensions grew.
This comes after a tough week where the company lost 17% of its value about $600 billion. The main reason? A Chinese startup, Deep Seek, launched an AI model that performs just as well as top Western options but at a much lower cost. This has raised questions about NVIDIA’s future in the AI chip market, especially as big companies like Microsoft and Google rethink their AI spending. That’s why everyone is thinking, why is Nvidia stock dropping so fast. Let’s explore the main reasons of it.
Table of Contents
Intel’s Subtle Strategy on NVIDIA’s Struggling Day
NVIDIA is currently struggling and Intel is taking over. The reason NVIDIA’s stock is dropping fast today, is because of various financial concerns and people are panicking.
NVIDIA Growth Doesn’t Exist
X posts claim NVIDIA growth is 65% when compared to the previous year, instead of the 200% they were making before. No one seems to be buying from it. Which is where the problem lies. 65% is still a huge number, but people expected more.
Stock Price Slips
They are now trading at $135 a share, having dropped 8.5% overall in a single day. It does not take a genius to understand that type of decline would strike some fear into people, and you can certainly understand why so many were left on edge.
Intel seems to have an advantage over NVIDIA. The rumor on the Intel competition seems to be spreading. People are left in a panicking state because it no longer seems like Intel is going to face competition from NVIDIA.
DeepSeek’s Sudden Arrival
DeepSeek, a company started by Liang Wenfeng in 2023 made headlines in January 2025 by launching their AI model R1 for the first time. This model is capable of providing computers with the ability to think and solve problems. Whether it may be the writing or marketing challenges, the model grabbed the attention of the people in the world especially in the tech world, because it challenged NVIDIA’s big role in AI.
How DeepSeek Distinguishes Itself
DeepSeek built their R1 model off older NVIDIA chips, A100s, and H800s which are not nearly as advanced as NVIDIA’s latest Blackwell chips. DeepSeek claims to have trained this model for a measly $5.6 million, which is nothing compared to the hundreds of million dollars companies such as OpenAI seem to spend. It’s cost effective, cheaper to run and requires less computing power than many other AI models. For example, DeepSeek charges around $0.55 per million input tokens bits for data, as opposed to Open AI, whose claim is $15. That is a big difference! This is the main reason of Nvidia’s stock is going down today.
Why IS Nvidia Stock Dropping So Fast?
Let’s cover this aspect from the NVIDIA point of view. When DeepSeek presented R1 model in January, that was the period when NVIDIA’s stock crashed drastically. On January 27, 2025, NVIDIA’s stock price crashed 17%, resulting in the company losing $589 billion in value in a single trading day, making it the most single-day loss for any company in history. Why? The investors became concerned. NVIDIA profits by selling expensive chips that drive AI, however, if DeepSeek is able to do great work with older, cheaper equipment, then there is less need for NVIDIA’s cutting-edge chips. So, on March 3, NVIDIA’s stock is sitting at 135 dollars a share, down from 150 in early February, and posts on X show that it’s still stable.
Should You Buy Nvidia Stock Now?
Although it has been a rough ride lately, NVIDIA’s stock is currently trading around $135 per share. Despite the increased competition and apprehension among investors, it remains the industry leader in AI chips.
Growth’s Slowing
Sales growth is at 65%, down from the crazy 200% days. It’s good, but not “amazing” anymore.
Competition’s Real
DeepSeek and others are making cheaper AI options, and it’s got NVIDIA’s stock shaking down to 8.5% as of last Thursday alone.
Still a Leader
NVIDIA’s Blackwell chips are in hot demand, and they’re king of the AI hill for now.
NVIDIA’s Still Got Power
NVIDIA’s Blackwell chips (their newest ones) are super popular. Companies building AI which are even smarter than ChatGPT, still need these chips, and demand’s high. X buzz says they’re sold out for months! Also, NVIDIA’s worth over $3 trillion, bigger than most, so it’s not going anywhere fast.
Nvidia still looks like a must own stock, as it is leading the AI revolution. Nvidia’s CEO Huang has proven himself again and again as a visionary, and the company is likely to benefit from future technologies that aren’t yet seen. In my point of view, it still is a stock worth having.
The Bigger Stock Market Picture Right Now
The stock market has a lot happening right now, and it’s not only NVIDIA. Some stocks are profitable, whereas others are not. Let us break it down:
Some Stocks are Increasing
Intel leads today, increasing over five percent before the market even opens! Why? Because NVIDIA and Broadcom are experimenting with Intel’s new 18A chip technology, and that’s a major thing, it confirms that Intel is doing something good. Also, Broadcom is up 2.5% and AMD is up 1.2%. All the talk is about chips, especially with those numbers, but NVIDIA stock is sinking instead.
How the Market Feels?
It has been a crazy ride. Last week the S&P 500 and Nasdaq stopped falling and even had a minor gain on Friday. People online are scared of increased tariffs and their effect on prices and consumption (the tax on China has increased TEN percent).
What’s making this happen
Sources say the markets like a seesaw one day up, the next day down. Reports say how hot inflation has been and stays about 3%, along with Trump’s talk of tariffs. The Federal Reserve doesn’t sound keen on cutting interest rates anytime soon. AI is still everyone’s favorite, but some worry it’s getting too much hype after two years of huge gains (over 20% each year) for the S&P 500.
My Take on Investing $1,000 in NVIDIA Right Now
On March 3, 2025, NVIDIA’s stock is being traded at $135 per share; competition, such as DeepSeek, has slowed growth and continues to impact the stock negatively. Although the company possesses AI chip market leaders, volatility and economic factors present great risks. At this time, investing $1,000 might be wiser if done when there are clearer signals or the price is lowered.
- Current Price: $135 with a recent decline.
- Key Factors: Competitive pressure and taxes create volatility.
- Advice: Best to hold off.
Current Stock Situation
Based on recent web updates, NVIDIA’s stock is currently priced at $135 per share today. By investing $1,000, you would be able to purchase about seven shares. Last Thursday, the stock dropped by 8.5% which translates to $227 billion worth of lost value, an enormous loss. This fall shows that investor confidence has dropped in light of NVIDIA’s future potential, despite the company being a big player for AI and gaming chip production.
Reasons for Caution
NVIDIA’s recent revenue growth stands at 65%, down from the over two hundred percent range. While that certainly is positive, it does not meet the previous standards and certainly has agitated some investors. Other major problems tell a different story and show that everything should be on pause for now. There is increasing rivalry since January, DeepSeek’s R1 model has been outperforming with older chips, which has reduced NVIDIA’s competitive advantage. People are hesitant of buying due to numerous factors such as tariffs (an increase of 10 percent on imports from China) and export regulations, which will eventually inflate prices.
Likelihood of Expansion
NVIDIA stands to benefit, especially with their high-demand Blackwell chips. Web sources list them as sold out, which means future sales are guaranteed. They have deals with giants like Amazon and Microsoft who spend billions on AI through NVIDIA. The company is valued at $3 trillion, which only points to its dominance. If the stock reaches $150 like it did in February, your investment with $1,000 would return $1,050 which is an excellent profit if done at the right time.
Risks and Rewards Balance
Currently, investing has benefits, but also has disadvantages. There lies the risk of a further fall, an 8% drop could reduce the $1,000 to $925. Competitors like DeepSeek combined with inflation seated at 3% creates a tense economy. There is no lack of rewards either. It’s a gamble between short-term shakes and long-term wins, with the market showing both possibilities right now.
From the moment DeepSeek and Grok showed up on the radar, NVIDIA’s stock volatility reached unrivaled peaks. The launch of DeepSeek’s R1 model in January 2025 led to NVIDIA’s stock falling from $142 to an astonishing $114 in just a couple of days. This translated to an unprecedented single day loss of $589 billion in value. In mid-February, NVIDIA stock rose back to $143. However, the Pelosi Dip Chasers, also known as Grok, came and took a stab at NVIDIA’s market confidence which led to further declines.
As of today, March 3, 2025, NVIDIA’s stock seems to have stabilized at $135. All of this has left NVIDIA’s market cap standing at $3.3 trillion, compared to the estimated 3.5 trillion the company enjoyed before Grok’s arrival. The market did not fail to notice ARM, another chip developer, as they staggered under the weight of these shocks. In regards to Grok 3, some have recommended the buying of NVIDIA stocks at its lowest, relying on the company’s AI chip prowess to spring back.
The Fight for the Top Spot
Competitors like DeepSeek seek to defy NVIDIA’s predominance within the realm of AI chips. The R1 model from DeepSeek which was released in January 2025 takes advantage of older and lower cost chips and performs decently well, thus taking some of NVIDIA’s glory. Investors are anxious since NVIDIA is experiencing a slowdown in growth at 65% compared to 200%, and their stock dropped 8.5% last week down to $135.
What would happen if NVIDIA chose to use their Blackwell chips in response, which are in demand? That can change the game. For now, what is leading to the fall of NVIDIA stock? It is the competition from Deep Seek, as well as the ever-aggressive Broadcom, who are desperately looking to seize market leadership.
